Description

Note: Attempt all the questions. All questions carry equal marks.
Q 1. What are the various forms of business organization? Explain.
Q2. What do you understand by principle of double entry? Give the rules of debit and credit
with suitable examples.
Q3. Journalize the following transactions: Rs

May 1

Purchased goods for cash

10,000

2

Purchase goods on credit from Ram Lal

6,55,000

5

Sold goods to Mahesh

50,000

8

Cash sales to Jayant

10,000

9

Returned goods to Ram Lal

15,000

11

Mahesh Returned goods

5,000

12

Purchased stationary

2,000

17

Rent Paid

5,000

21

Commission Received

10,000

23

Cash Received from Anil

2,000

Q4. Write short notes on any two of the following:
(a) Going Concern Concept
(b) Full Disclosure Concept
(c) Consistency Concept
Q5. Explain how Bank Reconciliation Statement is Prepared with an adjusted balance of cash
book?
Q6. If the Trial Balance does not tally, it means there are some errors in books of accounts.
Explain the procedure of locating these errors.
Q7. Distinguish between the following:
(a) Capital Receipt and revenue Receipt
(b) Capital Profit and revenue profit

Q8. What is meant by closing Stock? How is it valued and shown in the final accounts?
Explain.
Q9. What do you mean by one sided errors? How are these errors rectified? Explain with
suitable examples.
Q10. From the following Trial Balance of Sh. Raghu Ram, Prepare Trading, Profit & Loss
Account for the year ended 31st December, 2017 and Balance Sheet as on that date:

Dr. Rs.

Cr. Rs.

Purchases and Sales

375,000

4,20,000

Returns Inwards

15,000

Returns Outwards

10,000

Carriage

12,400

Wages and Salaries

52,600

Trade Expenses

2,200

Rent

12,000

Insurance

1700

Audit Fees

1,500

Debtors and Creditors

10,000

50100

B/R and B/P

3,300

2,200

Printing and Advertising

5,500

Commission

13000

Opening Stock

36,000

Cash in hand

18800

Cash in Bank

26,800

Bank Loan

20,000

Interest on Loan

1,500

Capital

2,50,000

Drawings

15,000

Fixed Assets

2,00,000

777,300

7,77,300

Adjustments:–

Stock at the end Rs. 50,000

Depreciate Fixed Assets by 8%

Commission earned but not received amounts to Rs. 600

Rent received in advance Rs. 1,000

Allow 7% interest on Capital and charge Rs. 900 as interest on Drawings.